Everyone likes free stuff, but as they say, all that glitter is not gold. Hence, you have to guide yourself with the right knowledge to avoid Airdrop scams. Before that what is Airdrop farming?
What is Airdrop Farming?
Airdrop farming is a cryptocurrency acquisition strategy that involves actively seeking out and participating in airdrops to collect as many tokens as possible. This method is more than just obtaining free digital assets; it necessitates a proactive attitude, which includes identifying new initiatives, fulfilling specified tasks, and frequently managing several wallets. Each wallet interaction might qualify for its own set of rewards, increasing the overall number of tokens earned.
Types Of Crypto Airdrop Campaigns
Airdrop campaigns come in different forms, each tailored to the blockchain project’s specific goals.
- Standard Airdrop: This is a marketing strategy. It’s an early attempt to get more people to utilize the token. At this point, members might have to subscribe to a newsletter, register an account, and provide their cryptocurrency wallet addresses.
- Exclusive Airdrop: A special airdrop is provided to committed users of a specific cryptocurrency project. Airdrops are run by websites and aggregators to reward their most loyal members. One unique feature of this type of airdrop is the lack of preconditions.
- Holder Airdrop: These are for users who maintain certain quantities of tokens from a different digital currency in their storage apps. Crypto projects usually conduct a survey of virtual currency holdings at specific intervals. Afterward, depending on how many tokens they own, users are allowed to claim their prize.
- Bounty Airdrop: Here, the project gives certain people who help promote their coin a reward airdrop. Users will usually need to invite and promote social media posts to get these airdrops
How to Get Airdrops
As protocols have begun to push out airdrops, there are numerous simple techniques to maximize your airdrops for the same amount of money. First, check sure you’re eligible for an airdrop. The following are the essential requirements for most airdrops.
- Interact with the procedure several times.
Most protocols encourage you to interact with their project. Depending on the project, this could involve depositing, lending, borrowing, or swapping monies. The more you interact, the more likely you are to meet this condition
- Invest as soon as possible
This appears clear, yet there are two reasons for it. First, several of these airdrop methods have been in use for many years. Take Starknet, for example, which has been operational for a while but has only recently begun delivering an airdrop. Some of their cutoff criteria were established over a year ago. Another reason is that points are awarded based on epoch, block, and time. As a result, the longer you continue to earn prizes, the more points you accumulate.
- Use alternative DeFi protocols/chains.
This is the most difficult tip because there are so many other DeFi protocols out there. If you useDdaily, you will most likely interact with some of the primary protocols. Some recommendations include using any protocols that the developers co-own.
How to avoid scams
Do your research.
Make sure you research the project, the team, the token, and the platform before participating in any airdrop. Seek out reliable information sources, including official websites, whitepapers, social media profiles, and discussion boards. Steer careful of airdrops that offer unrealistic returns or rewards or lack a defined goal, objective, or strategy.
Use a separate email address and wallet.
Most airdrops require you to submit both your email address and your cryptocurrency wallet address. To safeguard your privacy and security, use a different email address and wallet that are not associated with your primary accounts or identity. By doing this, you can protect your personal or financial information from becoming the subject of spam, phishing, or hacker attempts. To hide your location and IP address, you can also utilize a VPN service.
Don’t share your private keys or seed phrases.
One of the most common security guidelines anywhere is to never share your passcode crypto is no different. I might say that it’s been more dangerous since you stand to lose more. For crypto, your password is your private keys or seed phrases with anyone. They are the secret codes that allow you to access and control your crypto assets. If you share them with others, you risk losing your money or having it stolen. No legal airdrop will ever require your private keys or seed phrases. If you come across such a request, it is solid evidence of a hoax.
Be careful with downloads and attachments.
This is probably one of the most important to avoid airdrop scams. If you ever see an airdrop asking you to download an app, software, or file to receive your tokens or money don’t. Most of the said files or attachments may contain malware, viruses, or spyware, which could harm your device or jeopardize your security. It is also wise for you to use antivirus and firewall software to safeguard your device and detect any dubious files.
Keep track of all your airdrops and tokens.
When you join an airdrop, keep note of when and how you’ll get your tokens. Some airdrops send tokens or currencies instantaneously, while others take weeks or months. Some may ask you to do some tasks, like following their social media profiles, liking certain posts across different social media platforms, or inviting friends. Check the token or currency price, market capitalization, volume, and liquidity on credible services like CoinMarketCap or CoinGecko. This will allow you to assess the worth and potential of your airdrop prizes.
Overall tips
- If you see frequent errors then be sure something is fishy and do additional research.
- Legitimate airdrops will never request your private keys or sensitive personal information. Keep this in mind to avoid airdrop scams.
- If it looks too good to be true then it probably isn’t true.
- While some valid airdrops may request KYC, always confirm the project’s credibility before giving any information.